Forex Factory (https://www.forexfactory.com/forum.php)
-   Trading Systems (https://www.forexfactory.com/forumdisplay.php?f=71)
-   -   MM (Money Maker) Detective Indicator (https://www.forexfactory.com/showthread.php?t=911239)

robots4me Apr 22, 2019 4:20am | Post# 1

MM (Money Maker) Detective Indicator
 
7 Attachment(s)
MM (Market-Maker) Detective & Liquidity Gap Indicators

MM Detective & Liquidity Gap Indicators were inspired by @George AUS's thread entitled "Price action at the core / tma intra day" (https://www.forexfactory.com/showthread.php?t=874421).

For better or worse, market prices are manipulated. This can not be directly proven because the MM who manipulates prices is not a clumsy criminal who will leave fingerprints behind. Furthermore, the MM is not required to exercise transparency. So, the proof comes in the form of circumstantial evidence. By virtue of the fact that price manipulations are so precise the only reasonable conclusion is there must be an algorithm at work -- i.e. a MM. The connection between "precise price movements" performed by an algorithm is arrived at by deduction. Deduction is defined as: "a process of reasoning in which a conclusion follows necessarily from the premises presented, so that the conclusion cannot be false if the premises are true".

By demonstrating the precision that prices move to certain target levels, then @George has proven an algorithm must be at work -- hence MM manipulation. Furthermore, @George demonstrated that to the extent you understand the "psychology" behind the MM's manipulations, then your trading performance goes through the roof.

#################################################################################################

As I've learned more both from my own experimenting and what others have shared and posted, the number of indicators has grown, as has their features and functionality. Post #1 has a limit of 10 attachments -- including images and uploaded indicators. So, I've bundled all the indicators into one *.zip file. Going forward, whenever I update an indicator I will create a new *.zip file (that contains the latest versions of all the indicators).

Here is a link to the latest (greatest) versions of all the indicators. As time permits, I will also attempt to consolidate documentation in *.pdf files:
MM-Indis_19142.zip

The *.zip file includes the following indicators:
MMDetective.ex4
MMDetective-MTF-HLF.ex4
MMLiquidityGaps.ex4
MMZone2Indi.ex4
MMZone2Filter.ex4
MMAverageBarSize.ex4

I've included brief descriptions of each of the indicators below.

#################################################################################################

MM (Market-Maker) Detective Indicator

MM Detective shows the "lifetimes" of TOPS and BOTTOMS on a price chart.

Click to Enlarge

Name: MMDetective-main.png
Size: 39 KB

Looking at the price chart from left-to-right, the purple lines begin at a TOP and extend to the right until they are "taken-out" or removed by the price moving upward. Similarly, the blue lines begin at a BOTTOM and extend to the right until they are "taken-out" by the price moving downward. Using this indicator you can clearly see the "lifetimes" of TOPS and BOTTOMS.

A TOP occurs when the price moves downward. A BOTTOM occurs when the price moves upward. Stop Losses accumulate above and below the price line. In the case of Short trades (selling), Stop Losses accumulate above the price line, and in the case of Long trades (buying), Stop Losses accumulate below the price line. When the MM initiates a spike upward, Stop Losses from Short trades are taken-out. When the MM initiates a spike downward, Stop Losses from Long trades are taken out.

The pattern of ranging or trending prices followed by a spike occur over and over again -- every symbol and time frame. Furthermore the length of the spike is very exact -- just long enough to take-out the targeted Stop Losses -- no more and no less.

#################################################################################################

MM Detective MTF-HLF Indicator ('MTF' refers to multi-time frame, 'HLF' refers to higer-level fractals).

This version includes support for both MTF (multiple time frames) and HLF (higher-level fractals). MTF had always been in the works, but HLF was not. It was recently introduced to me by @SwingMan -- so he deserves all the credit. My sense is higher-level fractals do a better job detecting TOPS and BOTTOMS -- we'll see.

Click to Enlarge

Name: MMDetective-MTF-HLF-initial-version.png
Size: 30 KB

The purpose of the MM Detective MTF-HLF indicator is similar to its predecessor -- to detect TOPS and BOTTOMS that serve as potential MM targets. This new version adds support for MTF and HLF.

MTF Support: This means it can use bars from different time frames (M1, M5, M15, M30, H1, H4, D1, W1) to compute TOPS and BOTTOMS and display them all on a single chart. I don't think I need to say more about what the advantage is.

HLF Support: Turns out there are more to fractals than I initially imagined. The simplest type of fractal typically includes 3- or 5-bars -- and is referred to as a Level-1 fractal. MT4 comes with a Level-1, 5-bar fractal indicator. I happened to use it for this indicator because it seemed to do a nice job of picking-out TOPS and BOTTOMS -- as others have found. From @SwingMan I have since learned about Level-2 and Level-3 fractals, which can also be used to identify TOPS and BOTTOMS -- many of which overlap with the same TOPS and BOTTOMS identified by Level-1 fractals. In our context, a fractal consists of a midpoint plus left and right shoulder. A Level-1 fractal has a middle bar plus one bar as its left shoulder and one bar as its right shoulder. A Level-2 fractal also has a middle bar -- but for its left shoulder there is a Level-1 fractal and for its right shoulder there is a Level-1 fractal. A Level-3 fractal again has a middle bar -- and guess what it uses for left and right shoulders? That's right -- Level-2 fractals.

#################################################################################################

MM Liquidity Gaps Indicator

Liquidity gaps -- also referred to as "hidden" gaps -- reflect unfilled (untransacted) BUY or SELL orders. My working hypothesis, until someone comes up with something better, is the MM desires to transact these orders. Furthermore, the only way to make money in forex is for prices to move vertically up and down, and in order to move up and down there must be liquidity. Whether the MM manipulates prices to keep liquidity fluid or whether it manipulates prices to prevent world-wide commerce from shutting down, I don't know. Regardless, liquidity is vital.

Since there are a fixed number of units of each currency then every BUY must be matched by a SELL. Suppose a large BUY order comes in at a certain price, but there are no units of that currency available at that price. The MM has to shake the tree a bit to harvest some units to satisfy the BUY order. This is where the manipulation comes into play when you see how target levels are created to lure traders in one direction or the other -- the goal being to close them out, free-up units of currency, and provide liquidity necessary to transact unfulfilled orders. I don't know for sure whether this is how it all works -- but for now it provides a context for me to explain MM psychology.

From @George I've learned about two types of targets:
(a) Target levels (created by TOPS and BOTTOMS lines) that are created by the MM to lure traders into thinking there are support or resistance levels. The intent is to either encourage traders to open a new position or adjust their stop loss (for later harvesting by the MM).
(b) Liquidity gaps -- prices that need to be revisited because unfilled orders remain to be transacted.

The MMDetective indicators were created to help identify the target levels created by TOPS and BOTTOMS lines.
The MMLiquidityGaps indicator was created to detect liquidity gaps which are often hard to detect by eye.

Liquidity gaps can be displayed as lines (which I prefer) or as boxes. Bullish liquidity gaps get filled when the MM pushes the price down, while Bearish liquidity gaps get filled when the MM pushes the price up. The reason I prefer lines is because gaps are not necessarily filled by a single price movement -- that is, the MM may take multiple bites out of the gap and it is easier to see this with lines. The images below provide a flavor of what I mean:

Click to Enlarge

Name: line-box-gaps.png
Size: 130 KB

As liquidity gaps get filled you may prefer they no longer be displayed. The indicator provides a setting that allows you to control whether or not filled gaps get removed. When filled gaps are removed then the only gaps that are displayed are those which remain as active targets.

#################################################################################################

MM Zone2 Indicator

MMZone2Indi is probably quite different than most others you are familiar with. It divides a price chart into two zones -- Zone #1 is where the MM's manipulation and buy / sell / stoploss fest occurs, and Zone #2 is the aftermath of a liquidity gap where the MM has "shown its hand". There is an important underlying assumption -- liquidity gaps get filled a very high percentage of the time (like > 95%). If you disagree with the statement, then this indicator is NOT for you.

Click to Enlarge

Name: MMZone2Indi-v2.png
Size: 190 KB

We've discussed dividing a price chart into two regions or zones. Zone #1 is where most of the trading occurs and where the MM performs its manipulations. There is no reason not to trade in Zone #1 -- just be aware of the manipulation going on. This is what we learned from @George's thread.
When asked for some guidance on how one should trade in the presence of all this manipulation, @moodybot provided a clue -- wait for the MM to show its hand. And that is what led to the idea of a Zone #2. Zone #2 is the region immediately following a perturbation -- where the MM closed an accumulation of stop losses to generate liquidity. The perturbation comes in the form of a price spike. A side-effect of the price spike is that a liquidity gap is formed. I don't think that is necessarily intentional -- rather, it is the result of an unexpected spike that skips over a range of prices.

In the immediate aftermath of the perturbation the system is in an unstable state and the price is out of whack. So, the MM probably desires for the system to return to a "fair value" state -- i.e. re-establish an equilibrium between buyers and sellers. This small window -- where the MM probably limits its manipulation -- I'm calling Zone #2.

There is no "official" definition of where Zone #2 begins and ends. This is strictly empirical. But it's interesting and introduces yet another approach to trading. The MMZone2Indi indicator uses the immediate aftermath of a liquidity gap to define the start of a new Zone #2. That is, Zone #2 begins at a newly formed liquidity gap. But where does it end? I can not say for sure. However, what I've done here is to use the first 7-bar fractal to define the end of a Zone #2. There is nothing magical about using a 7-bar fractal -- I just needed something to act as a fence post between Zone #2 and the next Zone #1 because the MM certainly does not leave anything behind that could serve as a boundary.

Here are some general trading rules -- they are not carved in stone and may change as we learn more:
1. Define Zone #2 -- where the LHS (left-hand side) is a newly-formed liquidity gap and the RHS (right-hand side) is a 7-bar fractal pointing in the same direction as the liquidity gap.
2. Within Zone #2 we are looking to trade in the opposite direction of the LG (liquidity gap). That is, after a bullish LG we are looking to go SHORT, and after a bearish LG we are looking to go LONG.
3. Within Zone #2, we need a filter / indicator / magic wizard to help us decide the timing of a trade. Currently I've chosen to use the default Stochastic oscillator since provides both direction and timing components. When the Stoch crosses '80' downward then you SELL, and when the Stoch crosses '20' upward then you BUY. The colored dots align with the Stoch crossing '20' upwards or the Stoch crossing '80' downwards.

This new idea of trading from Zone #2 looks promising, but it is not perfect. Additional rules / filters can be added to improve accuracy.

One important question still remains -- when to Exit. If you are greedy and wait too long, then your winning trade turns into a loser. It looks like if you are willing to accept small wins then positions that were opened within Zone #2 have a high win rate. Perhaps judicious use of SL and TP will be good enough.

Another point -- I really like using @Nih98's TMA indicator and I've included it in the example above. Though not required, it does provide visual context so you can better determine whether the current perturbation is strong or weak, which might influence your decision to make a trade within the current Zone #2 or pass.

#################################################################################################

MM Zone2 Filter

Click to Enlarge

Name: MMZone2Filter-3.png
Size: 306 KB

The MMZone2Filter indicator differs from MMZone2Indi in that it can be attached to either the main window or a subwindow of a chart. The setting 'Which Subwindow' specifies which subwindow will be overlayed with the Zone2 shadows. In addition, Zone2 rectangles are still drawn in the main chart.

If you are interested in trading the "MM Show Hand" region (immediately following a spike), then this is the best I can offer. From the screen shots above you can see how the "filter" overlays your favorite indicator. In this way you can continue using your indicator and, at the same time, know whether you are in Zone #2 or Zone #1.

#################################################################################################

MM Average Bar Size

Click to Enlarge

Name: MMAverageBarSize.png
Size: 23 KB

MMAverageBarSize is a simple indicator that displays the average body and HiLo size (in Pips) for each of the symbols in your Market Watch windows. The setting 'WhichTimeFrame' can be used to specify a Time Frame other than the current one.

Turns out that candle sizes are not created equal -- they can differ quite significantly from one pair to another. When trading M1 this probably becomes more of an issue because the spread takes a bigger bite out of each trade. I think this is why @George (and others) like trading GBPJPY -- its bar size is nearly 3x larger than EURUSD.

#################################################################################################

For those who are unsure who / what is the MM we're referring to -- here is a snippet from post #1405. It is worth repeating here:

Inserted Video


Jekyll Island is a resort off the coast of the state of Georgia in the US. It used to be a resort for the ultra, ultra wealthy. Back in the 1920's there was a world-wide economic depression with no hope in sight. There was rioting in the streets. A small group of very powerful men -- bankers from around the world -- secretly met at Jekyll Island. The outcome was the US Federal Reserve Bank. It has a nice name -- you'd think it was overseen by the US government -- but it is not. It is a non-elected, private institution. The US government is allowed to appoint one member to the board, but neither Congress or the President can tell the Federal Reserve Bank what to do. Furthermore, it is not required to act with transparency -- since it is a private institution. The story of Jekyll Island is not a conspiracy theory. In fact, one of the men who participated in the initial meeting even wrote about it in his autobiography.

robots4me Apr 22, 2019 4:59am | Post# 2

1 Attachment(s)
The MMDetective indicator has 3 settings -- described below:

Click to Enlarge

Name: MMDetective-Settings.png
Size: 89 KB

The first setting, when 'true', removes TOPS and BOTTOMS taken-out by spikes -- this is the default behavior. If set to 'false', then the purple and blue lines will extend to the right-hand edge of the chart (i.e. current time). When set to 'true' then by glancing at the right-hand edge of the chart you see only those TOPS (purple lines) and BOTTOMS (blue lines) that have survived until now.

The second setting, when 'true', displays the fractal points used to determine TOPS and BOTTOMS -- this is the default behavior. If set to 'false', then the fractal points are hidden.

The third setting is used to specify the maximum number of bars to use for the calculations -- the default is 500 and I would recommend leaving it at that value.

TheJube Apr 22, 2019 5:12am | Post# 3

MM (Money-Maker) Detective Indicator MM Detective is a new indicator I recently created -- it shows the "lifetimes" of TOPS and BOTTOMS on a price chart. I've decided to share it with ForexFactory members as a sign of gratitude to FF. I enjoy reading FF and have learned a lot from other members and authors. The idea behind the MM Detective Indicator was hatched from following @George AUS's thread entitled "Price action at the core / tma intra day" (https://www.forexfactory.com/showthread.php?t=874421). For those of you who followed @George's...
Interesting. I tried to install the indicator, but both ICMarkets and Hugosway they it doesnt show up after putting it in the MQL4 folder...

robots4me Apr 22, 2019 5:26am | Post# 4

1 Attachment(s)
Below is an example of applying a 10-period, simple MA to the MMDetective indicator:

Click to Enlarge

Name: 10SMA-2.png
Size: 109 KB

Look at the portion of the price line labeled "Rising 10 Simple MA". Do you see how short the purple lines are and how long the blue lines are? This is not rocket science, and simply confirms -- visually -- why you should not be selling when a 10 SMA is rising. Similarly, looking at the portion of the price line labeled "Falling 10 Simple MA", you can see that the "lifetimes" of the purple lines are much longer than the blue lines -- visually confirming why you should not be buying when a 10 SMA is falling.

Again -- this is nothing new. However, the MMDetective indicator makes it much easier to visualize how the price is moving. Also, combined with the fractals points, this can be used to provide trade signals.

As an FYI -- this indicator does not repaint. However, it usually takes 3-5 bars to compute a fractal point. So, if you notice a fractal point above or below a bar where one hadn't appeared previously, it is because it takes 3-5 bars to compute a fractal point. In other words, fractal points will always lag 3-5 bars.

robots4me Apr 22, 2019 5:38am | Post# 5

Interesting. I tried to install the indicator, but both ICMarkets and Hugosway they it doesnt show up after putting it in the MQL4 folder...
@TheJube -- I just now installed a version of Hugosway MT4 and it works fine. Just to be clear, the indicator does NOT go in the MQL4 folder. It should be copied into the ..\MQL4\Indicators folder.

robots4me Apr 22, 2019 5:55am | Post# 6

1 Attachment(s)
Below is another example using the TmaTrue indicator with the MMDetective indicator:

Click to Enlarge

Name: TMA-1.png
Size: 72 KB

I've circled 4 BOTTOMS that poked below the TMA line -- these would have been good places to open BUY positions. I've also circled 4 TOPS that poked above the TMA line -- these would have been good places to open SELL positions.

dicojoxaftr Apr 22, 2019 6:13am | Post# 7

1 Attachment(s)
ok mm im buying gold for fun to 1285 and i dare you to take it down

cheers

Name:  XAUUSDcH4.png
Views: 25027
Size:  12 KB

matthew89 Apr 22, 2019 6:15am | Post# 8

Below is another example using the TmaTrue indicator with the MMDetective indicator: {image} I've circled 4 BOTTOMS that poked below the TMA line -- these would have been good places to open BUY positions. I've also circled 4 TOPS that poked above the TMA line -- these would have been good places to open SELL positions.
How do you confirm these signals?

TheJube Apr 22, 2019 6:19am | Post# 9

{quote} @TheJube -- I just now installed a version of Hugosway MT4 and it works fine. Just to be clear, the indicator does NOT go in the MQL4 folder. It should be copied into the ..\MQL4\Indicators folder.
Weird. Yes i did put it in the MQL4\Indicators folder. Could you maybe share the MQL4 file? Because you shared the EX4 file, maybe the other one will work

robots4me Apr 22, 2019 6:26am | Post# 10

How do you confirm these signals?
@matthew89 -- as I stated in post #1, this thread is about an indicator -- not a methodology.

I've created and shared a new type of indicator. I've explained how it works. I've provided a couple of examples of how it may be combined with other indicators. The exercise is left for you to determine (a) if the indicator provides any value and, if so (b) how best to use it in your trading. And if you find a combination that works well for you then, hopefully, you would share it with the rest of us.

robots4me Apr 22, 2019 6:32am | Post# 11

Could you maybe share the MQL4 file? Because you shared the EX4 file, maybe the other one will work
@TheJube -- so, you think the *.mq4 file will work better than the *.ex4? Funny -- I was wondering how long it would take for someone to ask for the source code.

Are you saying the indicator doesn't even appear in the Navigator list? Or that it fails when you attach it to a chart? If it is the former, have you tried refreshing the list (or relaunching MT4)? If it is the latter, then check for error messages under the 'Experts' tab in the 'Terminal' window.

TheJube Apr 22, 2019 6:42am | Post# 12

{quote} @TheJube -- so, you think the *.mq4 file will work better than the *.ex4? Funny -- I was wondering how long it would take for someone to ask for the source code. Are you saying the indicator doesn't even appear in the Navigator list? Or that it fails when you attach it to a chart? If it is the former, have you tried refreshing the list (or relaunching MT4)? If it is the latter, then check for error messages under the 'Experts' tab in the 'Terminal' window.
Well, excuse me for asking for the MQL4 file: if you share an indicator that doesn't even show up in my navigator list on two different platforms, then yes i have to ask it... Interesting to see if it will work on someone else's platform though. Might just be my pc. And yes i have alot of experience and i know how to refresh my terminal and load new indicators, but thanks for the help

robots4me Apr 22, 2019 6:58am | Post# 13

Well, excuse me for asking for the MQL4 file
@TheJube -- of course, there's no harm in asking for the source code -- but it is a BIG deal, right?. If the indicator doesn't even show up in the navigator list then why would that be a reason to ask for the source code? It makes no sense...

I've already spent time downloading and installing MT4 from one of your preferred brokers -- the indicator appears under the Navigator pane and runs fine.

There have been a number of downloads -- and, so far, you are the only one reporting a problem. It is known that MT4 will delete *.ex4 files that it doesn't like (e.g. a text file that was renamed with an *.ex4 extension). Have you checked whether the *.ex4 is still present in the Indicators folder?

TheJube Apr 22, 2019 7:09am | Post# 14

{quote} @TheJube -- of course, there's no harm in asking for the source code -- but it is a BIG deal, right?. If the indicator doesn't even show up in the navigator list then why would that be a reason to ask for the source code? It makes no sense... I've already spent time downloading and installing MT4 from one of your preferred brokers -- the indicator appears under the Navigator pane and runs fine. There have been a number of downloads -- and, so far, you are the only one reporting a problem. It is known that MT4 will delete *.ex4 files that...
I did it because sometimes the mql4 file does work, and the ex4 file doesnt. I also haven't seen anyone post a working picture yet

But back on topic: the file is still in the folder, and still doesn't show up.

We will wait and see if im the only one, so if someone else who downloaded it can confirm if it works or not, would be great

AndresSR Apr 22, 2019 7:13am | Post# 15

{quote} @TheJube -- of course, there's no harm in asking for the source code -- but it is a BIG deal, right?. If the indicator doesn't even show up in the navigator list then why would that be a reason to ask for the source code? It makes no sense... I've already spent time downloading and installing MT4 from one of your preferred brokers -- the indicator appears under the Navigator pane and runs fine. There have been a number of downloads -- and, so far, you are the only one reporting a problem. It is known that MT4 will delete *.ex4 files that...

Nice Indicator...Loads Fine....Thanks for Sharing....

However...Adjusting colors of the lines (Dodgerblue/Magenta) doesn' t work.....prefer a bit "brighter" colors....

And ...it deletes all "manual" drawn lines.....

TheJube Apr 22, 2019 7:17am | Post# 16

{quote} @TheJube -- of course, there's no harm in asking for the source code -- but it is a BIG deal, right?. If the indicator doesn't even show up in the navigator list then why would that be a reason to ask for the source code? It makes no sense... I've already spent time downloading and installing MT4 from one of your preferred brokers -- the indicator appears under the Navigator pane and runs fine. There have been a number of downloads -- and, so far, you are the only one reporting a problem. It is known that MT4 will delete *.ex4 files that...
Installed FXPro's platform and it works there, so it was me!

Thanks for sharing If i have a good idea how to incorporate this indi in trading i'll share it here

Greetz, TheJube

robots4me Apr 22, 2019 7:17am | Post# 17

Installed FXPro's platform and it works there, so it was me!
@TheJube -- excellent. I do appreciate that you let me know.

And, yes, any insights you gain I'd be interested to learn.

Nih98 Apr 22, 2019 7:29am | Post# 18

Nice work Brother.

From programming side, maybe lines color, size, type options will be great and also unique string names for that, so when de-init we could do specific clean out and not delete all objects in active chart.

NIH

4fxonly Apr 22, 2019 7:39am | Post# 19

1 Attachment(s)
Hello, robots4me.
Thanks for sharing. I appreciate the use of this indicator especially for the lazy ones not really keen on drawing the past targets and also to see how the theory has worked in the past (although I wouldn't go as far as to endorse your suggested MA and TMA applications, as they make lose sight of the psychology factor). Something I noticed, though, as shown in the pic: how come those lines do not stop at the points marked by the arrows when the price takes those levels out? There are other examples in that same chart but those 2 are enough to make my point. Maybe a bug?
Also, by keeping the default settings for the 1st option, should we not see only the lines still not violated at this moment, while we see quite a lot that have been stopped, as in yours and my pic?
Again the way the indi behaves right now, it looks useful for looking at the past action, and it's worth to still keep that option, but it would be handy to add a further one, again, to show only the lines still not violated. Thanks.
Click to Enlarge

Name: 2019-04-22_12-12-16.jpg
Size: 249 KB

grenell Apr 22, 2019 8:01am | Post# 20

{quote} I did it because sometimes the mql4 file does work, and the ex4 file doesnt. I also haven't seen anyone post a working picture yet But back on topic: the file is still in the folder, and still doesn't show up. We will wait and see if im the only one, so if someone else who downloaded it can confirm if it works or not, would be great
I have downloaded and installed on Pepperstone MT4 and it works perfectly. No issues.

I do have a request to robots4me...I am a colour blind male (about 25% of males are colour blind). I have tried to change the colour Magenta to OrangeRed as Magenta and DodgerBlue look pretty much the same colour to me. My changes do not save and revert back to Magenta. When scanning a chart it becomes hard to see the difference when the lines are in close proximity to each other. Is it possible to have the indicator accept changes to the colours?

The concept looks pretty good and I look forward to giving it a run.


© Forex Factory